Awareness about Plight of Renters in Foreclosure Twisters

Posted in Foreclosure, February 11th, 2008 |

Desmona Stewart was given a 30 days notice to vacate her rented premises – bag and baggage with seven children in tow. By taking legal help she could extend it up to 90 days – but nothing beyond.
Many trying to survive the foreclosure melt down had opted for becoming tenants rather than house owners. But foresight had been lacking to see that renters became homeless together with hapless owners of the house. According to statistics 38% of the foreclosed houses in East Bay are occupied by tenants.

Banks are getting empty houses which they are unwilling to rent out because they are not suited for the role of landlords. They want to sell off and realize their dues and a vacant house fetches a better price. On the other hand there are more empty houses and less houses offering accommodation to renters. This is telling on the market. Tenants have been described as the ‘hidden casualties’ of the foreclosure crisis. It is advisable that before renting a residence public documents should be checked to review the health of the property. But it will be difficult to find out until the landlord actually turns delinquent and gets a notice. Also the renter can ask the house owner to provide a credit reference. That should clear the sky. But it is not always easy for the unsophisticated renter to make necessary enquiries.

Recently the foreclosure prevention centres are getting more calls from renters asking for help. Over 30% of the calls are related to tenant problems. Most of these were from people staying in single family houses who were regularly paying rent but were ignorant about the impending foreclosure. Many moved out because they did not know that help was available – even though limited. Typically they all lost the security deposits together with the vanishing landlords. Landlords try to collect rent on the sly as long as they can keeping the tenants ignorant about the situation. The lenders and their agents try to evict tenants by offering cash-for-keys. Incentives up to $2,000 are given. The renters with nowhere to go are beginning to delay matters and resort to breakage and damage out of a sense of frustration – knowing they will never get back security money.

Oakland city gives some relief and renters can be evicted only if they become irregular in payments, engage in crime or cause grave damage to the property.